Consider the following information: State of Probability of Rate of...

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Accounting

Consider the following information:

State of Probability of Rate of Return If State Occurs
Economy State of Economy Stock A Stock B Stock C
Boom .17 .364 .464 .344
Good .43 .134 .114 .184
Poor .33 .024 .034 .089
Bust .07 .124 .264 .104

Your portfolio is invested 28 percent each in A and C and 44 percent in B. What is the expected return of the portfolio?

What is the variance of this portfolio?

What is the standard deviation of this portfolio?

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